Question 1

Eacker Company's quality cost report is to be based on the following data: 
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $151,000
B)  $155,000
C)  $145,000
D)  $103,000E) All of the above
F) B) and D)

Question 2

An increase in appraisal costs will usually result in an increase in internal failure costs.

Accepted Answer

A) True 
 B)False

Question 3

Hartoon Company's quality cost report is to be based on the following data:   Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Hartoon Company's quality cost report is to...

Question 4

Greater internal failure costs as a result of appraisal activities generally result in less:

Accepted Answer

A)  prevention costs.
B)  appraisal costs.
C)  external failure costs.
D)  all of the above.E) B) and C)
F) All of the above C

Question 5

Thais Company's quality cost report is to be based on the following data: 
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $373,000
B)  $100,000
C)  $570,000
D)  $126,000E) None of the above
F) A) and D)

Question 6

Ordinarily,managers are not aware of the magnitude of their quality costs because these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would be classified as an appraisal cost on a quality cost report?

Accepted Answer

A)  Rework labor and overhead.
B)  Lost sales arising from a reputation for poor quality.
C)  Net cost of scrap.
D)  Depreciation of test equipment.E) None of the above
F) B) and D)

Question 8

Hartwell Company's quality cost report is to be based on the following data:   Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Hartwell Company's quality cost report is to...

Question 9

Eacker Company's quality cost report is to be based on the following data: 
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $277,000
B)  $143,000
C)  $119,000
D)  $628,000E) A) and B)
F) A) and C)

Question 10

Gadsen Company's quality cost report is to be based on the following data:  Required: 
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Gadsen Company's quality cost report is to...

Question 11

Thais Company's quality cost report is to be based on the following data: 
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $155,000
B)  $170,000
C)  $99,000
D)  $197,000E) A) and B)
F) B) and C)

Question 12

Eacker Company's quality cost report is to be based on the following data: 
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $185,000
B)  $165,000
C)  $196,000
D)  $128,000E) A) and B)
F) B) and D) C

Question 13

Faas Company's quality cost report is to be based on the following data: 
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $130,000
B)  $148,000
C)  $236,000
D)  $117,000E) C) and D)
F) A) and D)

Question 14

Faast Company's quality cost report is to be based on the following data: 
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $247,000
B)  $108,000
C)  $121,000
D)  $102,000E) A) and D)
F) B) and D)

Question 15

Faas Company's quality cost report is to be based on the following data: 
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $172,000
B)  $160,000
C)  $102,000
D)  $117,000E) C) and D)
F) B) and C)

Question 16

Appraisal costs are incurred to identify defective products before they are shipped to customers.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A)  Quality training.
B)  Systems development.
C)  Repairs and replacements beyond the warranty period.
D)  Quality engineering.E) C) and D)
F) None of the above

Question 18

Faast Company's quality cost report is to be based on the following data: 
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $286,000
B)  $533,000
C)  $75,000
D)  $109,000E) None of the above
F) A) and C)

Question 19

Thais Company's quality cost report is to be based on the following data: 
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $98,000
B)  $84,000
C)  $113,000
D)  $92,000E) B) and C)
F) A) and B) A

Question 20

Faas Company's quality cost report is to be based on the following data: 
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $142,000
B)  $550,000
C)  $314,000
D)  $114,000E) B) and D)
F) B) and C)

Exam 16: Appendix B: Cost of Quality

Eacker Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

An increase in appraisal costs will usually result in an increase in internal failure costs.

Correct AnswerverifiedShow Answer

Hartoon Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Correct AnswerverifiedShow Answer

Greater internal failure costs as a result of appraisal activities generally result in less:

Correct AnswerverifiedC

Thais Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Ordinarily,managers are not aware of the magnitude of their quality costs because these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

Correct AnswerverifiedShow Answer

Which of the following would be classified as an appraisal cost on a quality cost report?

Correct AnswerverifiedShow Answer

Hartwell Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Correct AnswerverifiedShow Answer

Eacker Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Gadsen Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Correct AnswerverifiedShow Answer

Thais Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Eacker Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedC

Faas Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Faast Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Faas Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Appraisal costs are incurred to identify defective products before they are shipped to customers.

Correct AnswerverifiedShow Answer

Which of the following would be classified as an external failure cost on a quality cost report?

Correct AnswerverifiedShow Answer

Faast Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Thais Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Correct AnswerverifiedA

Faas Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

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